As the New Year approaches, Starbucks will be introducing a brand new drink as an additional to its permanent menu. Starbucks’ latte macchiato is certainly as delicious as it sounds.
Over the holidays, you’ve slept until noon, it would be extremely difficult to wake up and prepare for work in the morning without that zombie-like feeling. But Starbucks is here with its brand-new drinks to provide you that treasured caffeine. Although the latte macchiato is not an IV, it’s a new drink for those who are actually enjoying coffee drinks.
By January 5, many Starbucks outlets across Canada, US and other stores in Latin America will start unveiling the latte macchiato, a permanent addition to the Starbucks menu. This coffee chain hopes that the latte macchiato would simply match the success of its flat white drink which is popular in Australia.
The drink was conceptualized by a barista from Starbucks a few years ago. It was served to few customers without actually giving it a name. Right after the barista was promoted, he came up with new drinks and this brought the latte macchiato to the customers.
Similar to the typical cappuccino or latte, latte macchiato contains two ingredients: milk and espresso. Your barista will start pouring hot whole milk or any substitute that suits your taste. Slowly, espresso will be poured from a small pitcher, ending in a little dot right on top. The result with have 3 defined layers. You can look at the mixture in a clear glass.
This latte has a unique taste. If you’re the type who wants his coffee in a Frappuccino style, then you better go for another alternative. However, if you’re about to graduate from drinking milkshakes to more powerful drinks which with the same taste as an espresso, then going for a macchiato would be an excellent choice. It’s the right stepping stone between the flat white or cappuccino and an Americano.
Certified coffee master, Angus Maxwell also says going for a macchiato is also best for those who are shifting from an Americano to flat white or cappuccino. “Anybody who prefers a bold drip coffee would feel that this coffee is the perfect blend. You could also try the same with more milk,” Maxwell recommends.
Starbucks Enjoying the Best of the Years to Come
The beginning of the year 2016 finds Starbucks in a dominant market position compared to where it was 12 months before. Investors are taking a keen interest of this fact through 2015. To recap, the following are some of Starbucks’ achievements chalked up in a time frame:
• Extension of the Teavana premium tea brand
• Ramp-up of Starbucks’ reserved premium coffee sales
• Further diversification into the lunch daypart
• $5 billion earned in Starbucks’ card loads in 2015
• Reached 80 million transactions on a weekly basis
• Crossing 23,000 stores worldwide
• Launch of the Starbucks mobile order and pay
• 50 percent stock appreciation
Consider the fact that most of these achievements were tied to the mainline business of Starbucks. Recently, Howard Schultz, Starbucks CEO mentioned the actual case scenario that no other retailer that’s operating globally was capable of operating a retail beverage or food business such as Starbucks into the grocery aisle.
This division would make up the main portion of Starbucks’ channel development segment which turned over the coffee shop’s $1.3 billion in sales during 2015. This isn’t bad for the side business.
Now, as for the $18 billion revenue that Starbucks has penciled into its ledgers during the previous year, Schultz offered this comment to analysts: “The performance of Starbucks throughout the fiscal year 2015 was nothing short of being outstanding by any comparison, metric or standard.
We’re connecting deeply and meaningfully with many customers all across day parts and we’re providing record-breaking financial results on a quarterly basis, despite the accelerating change in consumer behaviour away from conventional bricks-and-mortar retailing. The financial results proved to be satisfying despite complex macroeconomic retail or consumer headwinds that continued to challenge traditional retailers,” says Schultz.
As to whether or not 2016 will be capable of topping 2015, Schultz took a pass. Getting a hand what could happen to every portfolio holdings for the upcoming calendar year is quite a necessary and legitimate exercise. For those fortunate investors who held “SBUX” shares for the past few years, it is tempting to enquire whether this could be Starbucks’ finest year yet.
However, it might be wise to simply toss the question regarding Starbucks’ potential this 2016 out for two main reasons:
First, Starbucks maintained a momentum in terms of global comparable sales. It is currently enjoying a streak of more than 5% increases over a total of 23 quarters. That would be nearly 6 years of beating the company’s own benchmark. Secondly, the stocks were priced to reflect the competitive advantages and quality of execution that Starbucks has to offer.